A seller in Rochester, Minnesota receives two offers simultaneously on the same property. Offer A is for $420,000 with no contingencies. Offer B is for $430,000 with a financing contingency. The seller's agent, acting as a seller's agent under Minnesota law, should advise the seller to do which of the following?
Correct Answer
C) Present both offers to the seller and explain the differences so the seller can make an informed decision
Under Minn. Stat. Ch. 82 and the duties of a seller's agent in Minnesota, the licensee must present all offers to the seller promptly and provide information to help the seller make an informed decision. The agent owes fiduciary duties to the seller including loyalty, disclosure, and obedience to lawful instructions. The decision of which offer to accept belongs to the seller — not the agent. The agent should explain the pros and cons of each offer (price, contingencies, terms) and let the seller decide.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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